Futures A Touch Firmer Overnight, 20-Year JGB Supply Due

JGB futures added 9 ticks in overnight trade, largely tracking the moves in U.S. Tsys, which meant that the contract finished off of best levels, after failing to test Wednesday’s peak.

• Note that there has been a light bid in U.S. Tsy futures during early Asia trade, which may provide some light support to JGB futures after the re-open. A Tsy-related spill over bid is expected at the open of cash JGB trade.
• A raft of post-Tokyo close policymaker communique provided nothing in the way of deeper pushback when it came to JPY weakness, with Japanese currency chief/Vice Finance Minister Kanda noting that the government is watching the matter with “vigilance,” while reiterating that excessive FX moves are undesirable (in line with recent comments from Finance Minister Suzuki).
• 20-Year JGB supply headlines the domestic docket on Thursday.